Horse Farming in Australia Industry Market Research Report Now Updated by IBISWorld

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The Horse Farming industry has benefited from increased prize money offered on local races and from the use of shuttle stallions by large players to boost the quality of locally bred horses. For these reasons, industry research firm IBISWorld has updated its report on Horse Farming industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Over the five years through 2019-20, the industry is expected to begin its recovery from the ravages of EI and the Hendra virus.

The Horse Farming industry has had a tough run over the past five years, recovering from the effects of the 2007-08 outbreak of equine influenza (EI) while confronting new outbreaks such as the Hendra virus in 2011-12. The industry has also been adversely affected by volatile trends in the downstream horse racing sector and by uneven spending by Australian households on horses and horse racing. According to IBISWorld industry analyst Anthony Kelly, “the Horse Farming industry has benefited from increased prize money offered on local races and from the use of shuttle stallions by large players such as Darley Australia and Coolmore Stud to boost the quality of locally bred horses.” The outbreak of equine influenza caused widespread damage across the country's horse farming and racing industries as movement restrictions meant that breeding was delayed or foregone altogether. The onset of the global financial crisis in the late 2000s and the outbreak of the Hendra virus also adversely affected investment into the horse racing sector and the performance of the Horse Farming industry. Industry revenue is expected to decline by an annualised 3.5% over the five years through 2014-15, to $800.0 million. This poor performance has accompanied a slump in industry profitability and led to the exit of many small-scale farms.

“Over the five years through 2019-20, the industry is expected to begin its recovery from the ravages of EI and the Hendra virus,” says Kelly. The industry will benefit from slower pace of decline anticipated in the horse racing sector, and is expected to be buoyed by the economic recovery and increases in prize money and average earnings. The average value of yearling sales is anticipated to increase over the next five years. Furthermore, as economic conditions gradually improve, the sale of horses for racing or for recreational purposes will trend upwards. However, these trends will likely not be sufficient to return the industry to sustained growth.

The Horse Farming industry is characterised by many small-scale participants, with almost two thirds of all breeders having only one mare. The four largest players in this industry together contribute about 15.0% of industry revenue. The largest thoroughbred studs, Darley Australia, Arrowfield Stud, and Coolmore, are estimated to generate about half the total service fee revenue for the industry. A study by the Thoroughbred Breeders Association found there are 34 breeders who own more than 49 broodmares each. These breeders own in total about 10% of all broodmares. Over the past 10 years there has also been significant horizontal integration. This significantly reduced the number of family horse farms and can be seen as a response to increased industry globalisation.

For more information, visit IBISWorld’s Horse Farming industry in Australia report page.

This industry consists of establishments mainly engaged in horse farming, which includes breeding of thoroughbreds, other horse breeds and ponies. Thoroughbred horses are predominantly sold to trainers for the horse racing sector, while other breeds are generally sold to the public for recreational purposes. Horse farms are commonly referred to as studs.

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IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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